Working Capital Management: Concepts And Strategies

Working capital refers to the money that a company uses to finance its daily operations. Proper management of working capital is critical to financial health and operational success. Working capital management (WCM) aims to maximize operational efficiency by maintaining a delicate balance among growth, profitability, and liquidity. WCM is a continuous responsibility focusing on a firm's day-to-day operations involving short-term assets and liabilities. By efficiently managing a firm's cash, accounts receivable, inventories, and accounts payable, managers can help maintain smooth operations and improve a company's earnings and profitability. By contrast, poor WCM could lead to a lower credit score, financial insolvency, legal troubles, liquidation of assets, and potential bankruptcy. This book provides an objective look into the dynamic world of WCM. Its coverage extends from discussing basic concepts and their applications to increasingly complex and real-world situations. The book stresses that WCM is a combination of both art and science. This volume spans the gamut from theoretical to practical while offering the right balance of detailed and user-friendly coverage. Readers can gain an in-depth understanding of this subject from experts in this field. Those who want a broad survey will benefit, as will readers looking for more in-depth presentations of specific areas within this field of study. In summary, Working Capital Management: Concepts and Strategies provides a fresh look at this intriguing but often complex subject of WCM.

H Kent Baker, CFA, CMA, is a University Professor of Finance at the Kogod School of Business, American University. He is an award-winning author who has authored or edited 41 books and more than 200 peer-reviewed academic journal articles. Professor Baker has published in the Journal of Finance, Journal of Financial and Quantitative Analysis, Financial Management, Journal of Corporate Finance, Financial Analysts Journal, Journal of Portfolio Management, and Harvard Business Review. He has been a consultant or trainer for more than 100 organizations in the United States, Canada, and Europe and has conducted over 800 training programs. Professor Baker has received numerous awards for research, teaching, and service, including University Scholar/Teacher of the Year at American University and the 2019 Distinguished Scholar from the Southern Finance Association (SFA). Professor Baker received a BSBA (management) from Georgetown University; an MBA (finance), MEd (educational administration), and DBA (finance) from the University of Maryland; and an MS (quantitative methods), MA (training and career development), PhD (educational administration and organizational development), and PhD (counseling and student development) from American University.

Greg Filbeck, CFA, FRM, CAIA, CIPM, FDP, PRM, holds the Samuel P Black III Professor of Finance and Risk Management at Penn State Behrend and serves as Director of the Black School of Business. Before joining the faculty at Penn State Behrend in 2006, he served as Senior Vice President of Kaplan Schweser between 1999 and 2006, where he was in charge of all content and curriculum. He also held academic appointments at Miami University (Ohio) and the University of Toledo, serving as the Associate Director of the Center for Family Business. Professor Filbeck has authored or edited 16 books and published more than 110 refereed academic journal articles appearing in the Financial Analysts Journal, Financial Review, and Journal of Business, Finance, and Accounting. He has conducted training for Goldman Sachs, the New York Society of Security Analysts, and many public, online, and video-based programs. Professor Filbeck currently serves as a Presidents Council Representative for the Eastern United States. He also served as the President of the CFA Society Pittsburgh, CFA Society Toledo, and Southern Finance Association.

Tom Barkley, CFA, FRM, CAIA, ERP, CTP, FMVA, is a Professor of Finance Practice at the Whitman School of Management, Syracuse University, and serves as the Director of the MS in Finance Program. Before joining the faculty at Syracuse in 2007, he worked for Enron (Research Group) and the Risk Analytics Group at Florida Power & Light. The work included pricing exotic options and structuring products for energy markets. Other professional experience includes retail banking in the United Kingdom, teaching high-school mathematics in the Bahamas, general management of a family-run publishing company in Brazil, and serving on the Board of Directors of a credit union in Syracuse. Professor Barkley has authored multiple book chapters and refereed journal articles. He graded Level III Exams of the Chartered Financial Analyst (CFA) program. Additionally, he served as a faculty advisor for teams participating in the CFA Institute Research Challenge of Western New York. Professor Barkley received a BSc (mathematics) from Imperial College London; a PGCE (mathematics) from King's College London; an MBA from Thunderbird, the American Graduate School of International Management; and a PhD (finance) from the University of Florida.